Mortgage News

High employment 'may ease repossession rates' - 20/12/2007

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The chief economist of the Royal Institution of Chartered Surveyors (Rics) has stated that good employment levels will limit the numbers of repossessions in the UK.

Simon Rubinsohn states that employment should remain in good shape throughout the course of next year, which in turn will help to "prevent significant numbers of repossessions and the subsequent influx of supply into the market".

"This should ensure that house price growth remains broadly flat over the course of the year," he adds.

Rics' Mr Rubinsohn also comments on the housing market in general, saying thatalthough 2008 could be a "difficult year for the housing market in the UK", falls in the Bank of England base rate and should help to provide a "stable platform" throughout the course of next year.

In related news, the Repossessions Advice Centre recently said 2008 would be a "tough year" for some homeowners as they emerge from the end of a fixed-rate product.

Paul Fletcher, director of the centre, said that many people may not be able to remortgage because a number of lenders have tightened up the lending criteria they operate on.

Mr Fletcher also highlighted that some people's mortgage repayments could increase by as much as 65 per cent.

© Adfero

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